Recapitalization when BR < 1


I had an idea to secure BR.

With yet another new token :grimacing:

Let’s call it wavesN

It will be minted via the neutrino SC but only if BR is < 1 .

Pricing will be

wavesN = waves x br

And you can swap them via neutrino SC to waves

If br > 1.05 wavesN = waves

The br rato for swap back needs to be >1 but 1.05 is just random .

You could do it the other way around

If br < 1

WavesN = waves

If br >1.05

WavesN = waves x br

Am I missing something or could that be helpful?


That proposal reminds me pretty much of the original idea of NSBT. So why not bring NSBT back to its original tasks:

  1. Be the re-collaterization token of the Neutrino platform.
  2. Act as the governance token of the platform.

Guess the idea of the moon factor has proven to be wrong, so we should get rid of it. It actually never worked as intended and yet, at the same time, destroyed the major functionality of NSBT.

I would in particular not suggest to invent yet another token. The system is complex enough and another token sure doesn’t make it easier. We still see lots of users struggeling with understanding of how the Neutrino system works (largely also because of the moon factor). Therefore, i would suggest to keep it as simple as possible.

As for the math of re-collaterization, the numbers can be discussed. Question is if we want to sell the re-collaterization token for Waves? I would rather tend to sell it for USDN and keep the Waves in the collateral.

Furthermore, the exact value on when the re-collaterization token could be sold back and for what value should be determined by simulations (at least). Here, they seem to be pretty much out of the blue.

But i agree with the general idea: we need to (re)establish the re-collaterization mechanism of the Neutrino protocol.

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Selling for USDn is a good idea didn’t though about that.

If we take the second option.
With br < 1
Mint new nsbt 1:1 in waves

And with br >1.05
Redem USDn in nsbt : waves x br

This way we could convince most nsbt holders (vote’s) that they get an option of swapping Ther nsbt to USDn over the contract if they want to.

Than we could remove the max 2.8m cap

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I think that this idea will contribute a lot to the system. It offers a simple and beautiful solution. It is an opportunity for investors who trust the system that the BR value will of course rise above 1, in order to protect their BR health.

When the BR value goes below 1, for example 0.95, investors will be able to buy 1 WavesN for 0.95 Waves. And when the BR value goes above 1 and equal 1, they will have a quick and simple 5% profit by buying 1 WavesN with 1 Waves. Also, Waves Coins that will be locked in the contract to produce WavesN will lead to an increase in the moon factor and easing of the Nsbt price pressure of the now moon factor.
In addition, since it will lead to an increase in the amount of Waves locked in the contrat, the decrease in the amount of Waves in circulation below BR 1 will help the upward movement of the waves price.

BR is one of the most important parameters in the allocation of the usdn trust. While it is not a big problem for old investors to temporarily stay below BR 1, new investors will consider the BR value for usdn confidence. Also, this idea does not cause a problem that the system is more complex. Even if new and small investors are not involved in buying WavesN, old and experienced investors benefit from profit rewards by contributing to the healthier operation of the system.

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